Falklands : Hydrocarbons Daily Record (28/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 28.09.2006 (Article Archived on 12.10.2006)
OPEC's President has announced that, for now, production will not be cut.
HYDROCARBONS DAILY RECORD: THURSDAY, 28 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT Thursday, 28 September 2006 Light Sweet Crude fell 4 Cents to stand at $62.77 and Brent Crude gained 20 Cents to stand at $62.41.
TRENDS
OPEC has announced that it is sticking by the decision it made at their conference in Vienna not to cut production. As yet there are no plans to meet, though some of OPEC’s members want crude to stay above $60.00 per barrel.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 41.16 points to settle 5,971.30 and the FTSE 250 gained 66.36 points to end at 9,978.20. FTSE Small Cap closed up 24.82 points to settle at 3,527.60.
DOW JONES AND NASDAQ
At one point during the day the Dow Jones Index surpassed it’s all time closing, attained on 14 January 2000 at 11,722.98.
At the end of play today the Dow Jones Index gained 29.21 points or 0.25% to settle at 11,718.45 and the NASDAQ gained 6.63 points or 0.29% to settle at 2,270.02.
DEVELOPMENTS
(OPEC)
OPEC’s President, Edmund Daukoru has announced in Vienna that no formal decision has been taken to cut crude production, although he has consulted with member nations about dropping prices. Some member nations want crude prices to stay above $60.00 a barrel. OPEC’s President also said that for the time being there will be no emergency meeting to discuss declining crude prices and production will remain steady at 28 Million barrels a day.
(Trinidad & Tobago)
Dr. Lenny Saith, Trinidad & Tobago’s energy Minister, announced on Wednesday that his Ministry has extended the deadline for bidding on the current hydrocarbons round for exploration and production in onshore, inshore and shallow marine acreage on Trinidad & Tobago.
The eight onshore/near-shore blocks include shallow and deep horizon areas in each of the Guayaguayare (2,329 sq km), Southwest Peninsula (1,455 sq km), Herrera (953sq km) and Central Range (1,590 sq km) blocks.The shallow marine blocks are 2(ab) covering 1,605 sq km and NCMA 2 and NCMA 3, which each cover 1,019 sq km. The three blocks have water depths ranging from 25-130m. Meanwhile offers for eight deepwater blocks now are due November 30 versus August 28 and successful bids are to be announced February 1, Inniss added. Twelve companies have expressed interest in these blocks. The eight blocks range from 79,947-84,155ha and are off the country's east coast.
According to an Energy Ministry press release Companies that submitted pre-bid applications for all or part of these blocks are the following: Amerada Hess (NYSE:AHC); Apache (NYSE: APA); BG (NYSE: BRG); BHP Billiton Petroleum; Centrica; Challenger Energy (TSX-V: CHA); Canadian Superior Energy (Amex, TSX: SNG); Canadian Voyager; Eni (NYSE: E); EOG (NYSE: EOG); Exxon Mobil (NYSE: XOM); Hardman Resources/Hardman Oil & Gas; Husky Energy International (TSX: HSE); Kerr-McGee TT Offshore Petroleum; Mitsubishi Energy; Mittal Steel (NYSE: MT); NewMarc Petroleum Associates; Nippon Oil; Petrobras Energia Venezuela; PetroCanada (NYSE: PCZ); Petronas; Repsol YPF (NYSE: REP); Statoil (NYSE: STO); Talisman (NYSE: TLM); TED; and Ten Degrees North Energy.
Successful bidders will be announced on 02 January 2007.
DEVELOPING REGIONAL FACTORS
(Ecuador)
Mr. Armando Rodas, Ecuador's Economy Minister, blasted on Tuesday, an International Monetary Fund (IMF) report about the country's energy policy. Calling it "a mediocre report filled with untruths," Mr. Rodas made his statement at a Singapore meeting of the IMF earlier this month. He went on to say that the report could frighten off potential investors in Ecuador’s hydrocarbons industry. Recently that industry was re-vamped with investors forking over 50% of the profits due to the high price of crude.
The report accused Ecuador and Bolivia of having similar energy policies. "Ecuador's energy policy is very different from that of Bolivia," Rodas said. "It is not a state policy when what we are trying to do is to fulfil the Hydrocarbons Law and signed contracts," he added.
(Venezuela)
Venezuela is stopping production of orimulsion currently used to fuel powerhouses in several nations worldwide. Venezuela suspended production after a comprehensive survey on the product found that orimulsion is not a suitable use of Venezuelan extra-heavy crude oil. Orimulsion, or natural bitumen, was rated as heavy-duty crude oil as it was hoped it would bring in more profit.
(Falkland Islands)
Share prices at the close of play on Thursday, 28 September 2006
Desire Petroleum Plc ended down 0.25 points or 0.69% on the day to settle at 36.00.
Falkland Oil and Gas Limited (FOGL) were down 2.00 or 2.23% on the day to stand at 87.50.
Rockhopper Exploration ended down 1.00 or 2.44% on the day to settle at 40.00.
Borders & Southern ended unchanged on the day to stand at 41.00
Tullow Oil ended up 18.25 points or 5.07% to stand at 378.25
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